Saturday, March 03, 2007

China, Iran and oil

The U.S. should not be perplexed if China votes down further sanctions against Iran, which nearly everyone is calling for. Why? Because: Iran biggest crude oil supplier to China

Iran, which may face additional United Nations sanctions after defying a deadline to stop uranium enrichment, was China's leading supplier of crude oil in January.

Shipments from Iran, holder of the world's second-largest oil reserves, rose 13 percent from a year earlier to 2.1 million tonnes, according to General Administration of Customs figures received Thursday. Imports from Iran almost tripled from December's level of 738,000 tonnes.

The Chinese position may be firm, but they will certainly not back harsh restrictions on their energy interests. Already, China has made it clear: China wants talks to resolve Iran issue.

How far the Chinese are willing to go remains unclear. Iran, unlike North Korea, is not in China's backyard, which may diminish their sense of urgency.

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